The online trading platform FXpro is well known for offering forex trading accounts, giving its customers the opportunity to trade on a range of currencies from around the world. Getting started can seem daunting, but luckily there is the FXpro demo account to get you started, test the waters, and let yourself get comfortable with the platform before you start investing. This forex broker comparison will allow you to test out your potential investments in a risk-free environment, so you can feel confident whatever you choose to invest in.
According to the FXpro's website, they have been given over 50 UK and international awards over the last decade, including the ‘Best FX service provider 2018’ by the City of London Wealth Management Awards and the ‘Most Trusted Forex Brand, UK, 2017’ from Global Brands Magazine. Such high acclaim chimes with the statement on their website that tells us that 250 million orders have already been completed at the time of writing, with clients from 173 countries globally having invested billions in their platform.
Calling themselves an industry leader for over ten years, their impressive list of awards cements their stature as a firm market leader and a well-established choice when looking at a forex comparison. Other awards on the international stage include winning the ‘Best FX Execution, Global’ two years on the run in 2016 and 2017, as judged by the CFI.co Awards. Their continuing list of acclaims over the years only seems to exemplify their confident claims on their website – which they have a special section for, termed their ‘trophy cabinet’ – with the list expanding year on year to suggest just how highly valued they are both by their customers and in the financial industry as a whole.
It’s all well and good being given a list of promises, including a ‘risk-free investment platform’, but there are plenty of terms being bandied around that suggest you might have to fund your FXpro.com demo account first, which seems to defeat the point of it. However, this isn’t the case. If you were to set up a trading demo account today, as we explained in our FXpro review, everything will be funded by simulated money. You can:
Why is it worth going through the hassle of trying to make money through an investment platform, only to find out that your choice hasn’t actually won anything at all as you went through a trading account demo? These aren’t just used as a beginners’ tool – the purpose of this type of platform is to allow you to try out different trading strategies and make sure that you feel comfortable with the idea before risking any capital – and although you might not win anything, it could also save a loss before you’re sure of executing what you have in mind. The only way the FXpro demo seems to vary from its active counterpart is during volatile market changes, where it might not respond in real-time and “in the exact same manner” – so if you’re looking to trade on an initial offering or on the back of some big news, this could be useful information before you start out.
One potentially confusing pitfall before you begin may come when you start to visit the FXpro demo account setup process on its website, where it lists both MT4 and MT5 platforms, as well as cTrader and FXpro Edge. For the uninitiated, this kind of jargon can seem complex and intimidating, so this is why a broker comparison can be extremely useful – you can pick something that makes sense to you before you look to invest. Research suggests that not every forex broker offers the same trading platforms and, in fact, some sites will offer a bridge to connect to other platforms to get around this, but it is suggested that this can have an adverse effect on trade management. The key difference between MT4 and MT5 trading mechanisms is that MT5 is considered a newer platform and handles more complex trading – including more than just forex. The common advantage of MT4 in this case is that it allows ‘hedging’, which is having more than one bet open on the same market, whereas MT5 does not. The other options available for your FXpro demo include FXpro Edge, which allows spread betting (according to their website, you can trade hundreds of different variables across different asset classes, such as stocks, shares or securities), and cTrader, which allows you to trade CFDs (contracts for difference). CFD trading is based on speculating market rises and falls.
When you’re using a trading demo account for the first time, it makes sense to try out everything that you think you could possibly ever want to get involved with when you begin trading for real. While this may seem like a long list, there is never a better chance to discover the different ways that you could be trading and get confident with every strategy before you invest your capital. With markets known for being volatile, especially in the world of forex trading, a lot can change in the space of just a few days, and knowing how to respond to these variances in the market could easily be the difference between a great returns sheet and otherwise. One of the exciting aspects of these demo accounts is that you are by no means limited to opening just one – so you can try out as many of the platform types listed above as you wish and fully get to grips with the mechanisms of each one before you get serious. The only issues to be aware of with this ‘unlimited’ policy is that a maximum of up to 70 MT4 and MT5 trading demo accounts can be open at any time, and also if you cease to be active on your FXpro MT4 account at any point, it will be deactivated 30 days later.
In order to get the ball rolling with your new FXpro demo account and begin testing out all of the exciting strategies that you’ve got planned in your head, all you need to do is enter a few details and pick a few options to tailor the account to suit you. The first decision is whether you want to have your account regulated by CySec or the FCA. The first one of these is named after the Cyprus Securities and Exchange Commission, while FCA stands for the Financial Conduct Authority. Although this won’t matter with a demo account, with an active trading account, this can affect things such as if claims should something go wrong in the market. Other choices include which currency you want to base it on, and also your allowed leverage. This one is a useful piece of jargon to know, as it basically defines how much money you can control based on your ‘market share’. If, for example, you go in at the suggested default of 1:500, you would only need an investment of 0.2% of the currency that you wish to trade. If it helps with the numbers, a starting point of 1:100 may be easier – so if you wanted to play with $100,000 of currency, you would need to risk $1,000. Live accounts with FXpro are typically capped at a leverage of 1:500 (depending on order size), though you can go higher with the demo account.
One thing to bear in mind, especially if you read around the subject, is that a common pitfall of the transition between the trading demo and the live account is starting off too high with your deposit on a demo account and then not matching that investment when you go live. This is completely understandable in one sense – not wanting to risk too much capital is naturally a worry for many people, particularly when starting out – but having much less of a margin to play with when you trade for real may cause you to behave differently and find it harder to recover a loss, should you encounter one. The best way to counteract this is to be honest with yourself and start with a low deposit on the trading demo account if you plan to take this route. Of course, if you’re looking to go higher, match that intent with the deposit on the demo version. This will allow you to get a fairer reflection on how your strategies will likely play out, and whether some of the riskier moves will still make sense when you have less capital to back you up. Think of it like a poker game – it’s much easier to call someone’s bluff with a high stack of chips sat behind your cards than it is when you’re barely affording the entry to each round – and being honest with your intentions will hopefully lead to some strategies with stronger returns.
Demo accounts offer a fantastic way to get started with forex trading, and certainly allow that risk-free feeling to allow you to really go for it and see what works, and what doesn’t. However, the demo account is unlikely to give you that real-time feel, and if you plan to bet on these markets, there are additional ways to supplement your knowledge. If you have the time, see if you can watch some markets happen live on the main website, and see how fast some of the markets change. If you plan to base your trading solely around reactions to market openings and scheduled news announcements from central banks and the like, everything will react a little differently on your trading demo account. It is important, therefore, to test out your strategies with the demo but not to assume that because something has or hasn’t worked on the demo, it won’t necessarily play out like that when it comes to the real thing. This is due to a term called slippage, where in live markets, you may place a bet but the market has already changed before the bet is placed. This won’t happen in the same way with a trading demo account, so it seems best to utilise the many benefits in a different way.
Some experienced users of trading demo accounts who successfully transition into forex traders recommend setting yourself a set of goals with your FXpro demo before you invest your capital. Think of it like learning to drive: it’s always best to be confident with the basics before you attempt to drive on busy roads at rush hour. The same kind of thing applies here – set yourself some tasks, and map out your expected results. If it doesn’t come in, try to analyse why the result didn’t play out as you thought it originally might, and then tailor your strategy and try again. Once you start to see results that you’ve predicted happen repeatedly, you can feel much more confident in your ability to trade and invest your capital without worrying as much about the end result.
This may seem somewhat obvious, but there may come a time when you hear of a strategy that you haven’t used before that you keep coming across elsewhere, and testing it out in this manner can be a lot less stressful than trying to execute it on a live platform!
We all know that investments and finances can be daunting, but having control over an aspect of your financial future can, in fact, be a lot less scary than having it managed by someone else. Whether you are looking to get involved with it as a hobby, to follow up a full-time interest, or invest in a retirement fund, there are a great many reasons to start, and nobody wants to waste their time, efforts or money getting results that go against what they expected. With a trading demo account, you can relieve the stress of needing instant results and begin to remove the fear, uncertainty and confusion that may surround some of these options. With FXpro also offering many platforms, you can test out several different ones and find the top forex broker so that when you’re ready to begin, you can get the results that you are after.